Bank of America Marketing Strategy & Marketing Mix (4Ps)
Published by MBA Skool Team, Last Updated: March 17, 2017
Marketing Strategy of Bank of America analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Bank of America marketing mix, help the brand succeed.
Bank of America marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Bank of America Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Bank of America Product Strategy:
The product strategy and mix in Bank of America marketing strategy can be explained as follows:
Bank of America is one of the leading global banks in the world. Bank of America offers consumer banking, global wealth and securities management, global banking, legacy assents and servicing, finance and insurance, investment banking, mortgaging of loans, private banking, credit cards, etc in its marketing mix product strategy. It has the following business segments: Personal, Small Business, Wealth Management, Businesses & Institutions. Bank of America is one of the banks which are a share of Global ATM Alliance, which means the users of Bank of America ATM cards don’t have to pay any extra fee while withdrawing cash from ATMs of any other bank. 3 is also into equity investments, mortgage servicing, etc.
Bank of America Price/Pricing Strategy:
Below is the pricing strategy in Bank of America marketing strategy:
Bank of America has a steady and reasonable interest regime.
It is the second most prime bank in the United Nations. JP Morgan Chase being the at top, and Bank of America is followed by Wells Fargo and Citigroup. In a scenario of tight competition, the Bank of America follows a competitive pricing strategy. The interest rates offered are close to the market leader’s.
Following is the distribution strategy in the Bank of America marketing mix:
Bank of America has made sure that their banking services are accessible to the customers with ease on multiple platforms. Other than the presence of thousands of banking centres across the globe it has an app as well. Bank of America has setup tablets on bank premises to make use of banking services easy, it also has the option of videoconferencing to connect with bank professionals within minutes to resolve issue. This approach has made banking smooth with the easy of home. Bank of America is present across the world as a part of its place & distribution marketing mix strategy.
The reach of Bank of America is vast as it has 350000 business customers which account for $200 billion outstanding loans.
Bank of America Promotion & Advertising Strategy:
The promotional and advertising strategy in the Bank of America marketing strategy is as follows:
Bank of America mostly has very subtle advertisements. It also gives out bonuses as a method to promote itself. Bonuses range from $100 to $2000. They can also be non-monetary for example museum tickets, free software of antivirus. These bonuses are given when one opens an account with the Bank of America and enters the promo code. Bank of America tries to appeal to the human emotion by their campaign on how it sis better if we stay connected to each other. It also has a cashback module in place for purchases at grocery store, gas station, etc.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Bank of America.
Bank of America knows the importance of people in its business. Employees are the vital link in banking industry as it is a service driven industry. Bank of America has 285000 employees. It follows a certain flow in its centres of banking to ensure best banking experience of the customers. When a customer enters Bank of America he or she is first addressed by relationship managers whose job is to identify the needs and issues of the customers and accordingly direct them to the concerned bank manager. Also now that they have adopted management information system and information technology, Bank of America also has Digital Ambassadors who assist customers in completely adopting the technology, help with downloading the app and how the app functions.
Bank of America has an extensive grid of offices and ATMs. To be precise it has 6300 ATMs, 5100 centres of banking, 50 million customers. These numbers are proof in itself about the scope of functions at Bank of America. Apart from this, the offices & branches of Bank of America give the overview on its physical presence.
Bank of America, like any other leading bank, has several processes and frameworks in place. 900 ATMS with Teller Assist live video technology around the globe. Teller Assist is a special module launched by the Bank of America in the recent years. This approach is to digitalise processes in the company. Teller Assist are screens setup around the bank premise for customer to interact with. It can help customers with most basic functions of banking. This module also ensures that quality of service is maintained, give time saving to the customers while reducing the need for employees to manage big numbers of customers. Hence, this concludes the entire Bank of America marketing mix.
About Bank of America:
Bank of America is a banking institution and financial services provider around the globe. It was set up as Bank of Italy in 1904 by Amadeu Gianni. It has grown multifold over the las hundred and twelve years to become one of the leading banks in the United States.
It acquired Merrill Lynch which has enabled Bank of America to offer brokerage services as well. Bank of America is the one of the largest banks with 4500 branches.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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